Module 3-Planning Technical Activities

MODULE OF INSTRUCTION______________________________ ENG-6301 Engineering Management
PLANNING TECHNICAL ACTIVITIES
Introduction
If managing an organization is to be pursued vigorously, planning will

constitute the most important activity. Managers who plan are afforded with
the opportunity to carefully analyze situations which directly contribute to
effective decision-making.
Nature of Planning
There are many instances when managers are overwhelmed by
various activities which at times becloud his judgment. To minimize mistakes
in decision-making planning is undertaken.
A plan, which is the output of planning, provides a methodical way of
achieving desired results. In the implementation of activities, the plan serves
as a useful guide. Without the plan, some minor tasks may be afforded major
attention which may, later on, hinder the accomplishment of objectives.
Planning Defined
• According to Nickels and others, refers to “the management function
that involves anticipating future trends and determining the best
strategies and tactics to achieve organizational objectives”.
• Aldag and Stearns, on the other hand, define planning as “the
selection and sequential ordering of tasks required to achieve an
organizational goal.”
 According to Cole and Hamilton it refers to “deciding what will be
done, who will do it, where, when and how it will be done, and the
standards to which it will be done”.
 In conclusion it is selecting the best course of action so that the
desired result may be achieved. It must be stressed that the desired
result takes first priority and the course of action chosen is the means
to realize the goal.
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Planning at Various Management Levels

1. Top Management Level
 Strategic Planning – refers to the process of determining the
major goals of the organization and the policies and strategies for
obtaining and using resources to achieve those goals. (the whole
company is considered, specifically its objectives and current
resources.
 The output of strategic planning is the strategic plan which spells
out “ the decision about long- range goals and the course of action
to achieve these goals.”
2. Middle Management Level
 Intermediate Planning – the process of determining the
contributions that subunits can make with allocated resources.
 The intermediate plan is designed to support the strategic plan.
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Operational Planning
• This refers to “the process of determining how specific tasks can best be
accomplished on time with available resources.” This type of planning is
responsibility of lower management. It must be performed in support of the
strategic plan and the intermediate plan.
Planning Process
• Setting organizational, divisional, or unit goals
• Developing strategies or tactics to reach those goals
• Determining resources needed and

• Setting standards
Setting Organizational, Divisional, Or Unit Goals
• The first task of the engineer manager is to provide a sense of direction to
his firm if he is the chief executive, to his division if he heads a division, or to
his units if he is a supervisor.
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• Goals may be defined as the precise statement of result sought, quantified

in time and magnitude, where possible.
Developing Strategies or Tactics to Reach those Goals

• The ways to realize the goals are called strategies and these will be the
concern of top management.
• A strategy may be defined as a course of action aimed at ensuring that the
organization will achieve its objectives.
• A tactic is a short-term action taken by management to

adjust to negative internal or external influences.
Determining Resources Needed
The quality and quantity of resources needed must be correctly
determined. Too much resources in terms of either quality or quantity will be
wasteful. Too little will mean loss of opportunities for maximizing income.
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To satisfy strategic requirements, a general statement of needed

resources will suffice.
Setting Standards
A standard may be defined as quantitative or qualitative measuring
device designed to help monitor the performances of people, capital goods,
or processes
Ex. Minimum number of units that must be produced by a worker per
day in a given work situation
Types of Plans
Functional Area Plans
1. Marketing plan – document for implementing and controlling an

organization’s marketing activities related to particular marketing
strategy.
2. Production plan – quantity of output a company must produce

3. Financial plan – summary of the current financial situation of the
firm, analyzes financial needs, and recommends a direction for
financial activities.
4. Human Resource management plan – indicates the human
resource needs of a company detailed in terms of quantity and quality
based on the requirements of the company’s strategic plan.
Plans with Time Horizon

• Short-range plans – plans intended to cover a period of less than one year.
( Supervisors )
• Long-range plans – plans covering a time span of more than one year. ( Top
Management )
Plans According to Frequency of Use
Standing plans – plans that are used again and again, and focus on managerial
situation that recur repeatedly
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• Policies – broad guidelines to aid managers at every level in making

decisions.
• Procedures – describe the exact series of actions
• Rules – statements that either require or forbid a certain action.
• Single use plan – specifically developed to implement courses of action that
are relatively unique and are unlikely to be repeated
ex. Budgets, programs and projects
Marketing Plan
• Executive Summary – presents an overall view of the marketing
project and potential
• Table of Contents
• Situational Analysis and Target Market
• Marketing Objectives and Goals

• Marketing Strategies
• Marketing Tactics
• Schedules and Budgets
• Financial Data and Control
Production Plan
• The amount of capacity the company must have
• How many employees are required
• How much material must be purchased
Financial Plan
• Analysis of the firm’s current financial condition as indicated by an

analysis of the most recent statements
• A sales forecast
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• Capital Budget
• Cash Budget
• Set of pro forma financial statements
• External Financing plan

Human Resources Plan
• Personnel requirements of the company
• Plans for recruitment and selection
• Training plan
• Retirement plan
Strategic Plan
• Company or corporate mission
• Objectives or goals
• Strategies
Making Planning Effective

• Recognize planning barriers
- Manager’s inability to plan
- Lack of commitment to the planning process
-Improper information
-Focusing on the present at the expense of the future

-Too much reliance on the planning department
-Concentrating on only the controllable variables
• Use of aids to planning
- gather as much information as possible
- develop multiple sources of information
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- involve others in the planning process
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Reference:
Roberto G. Medina(1999). Engineering Management, First Edition.
Distributed by REX Book Store, Inc.(RBSI)
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MODULE OF INSTRUCTION______________________________ ENG-6301 Engineering Management

PLANNING TECHNICAL ACTIVITIES

If managing an organization is to be pursued vigorously, planning will

Planning at Various Management Levels

• Determining resources needed and

• Goals may be defined as the precise statement of result sought, quantified

Developing Strategies or Tactics to Reach those Goals

• A tactic is a short-term action taken by management to

To satisfy strategic requirements, a general statement of needed

1. Marketing plan – document for implementing and controlling an

2. Production plan – quantity of output a company must produce

Plans with Time Horizon

• Policies – broad guidelines to aid managers at every level in making

ex. Budgets, programs and projects

• Marketing Objectives and Goals

• Analysis of the firm’s current financial condition as indicated by an

• External Financing plan

Making Planning Effective

-Focusing on the present at the expense of the future

- develop multiple sources of information

- involve others in the planning process

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